Superannuation, Advice & Planning

I believe one of the best things you can do for yourself is to be able to be self-funded when you stop working. The great thing about aiming toward financial independence is that it’s highly likely to result in a much better standard of living for you in retirement.

For example, it could mean the difference between having luxury overseas holidays (if that’s what you like to do) or not. It can also mean that you leave more to your loved ones when you move on.

Like most people, you’ll probably find that dealing with government bureaucracy in order to receive a paltry pension is a fairly empty compromise after a lifetime of hard work.  The government has no interest in what your lifestyle plans are when you stop working.

So, what’s so super about superannuation?

Well, as a tax effective vehicle superannuation is pretty hard to beat. Money invested within super is usually taxed much lower than outside of super. Combine this with allowable salary sacrifice concessions and you have one of the best ways to save for retirement.

The ability to top up your super and then receive tax free money when you reach the qualifying age is one of the many strategies that you can put in place to create an attractive income stream when you stop working.

There are also some asset protection, personal insurance and debt reduction benefits within superannuation that are not widely understood by the average person.

To summarise, the main benefits of contributing to superannuation are:

  1. Tax free income in retirement
  2. Pay less tax on your investment earnings up to retirement
  3. Potential to cut your income tax bill through salary sacrifice
  4. Superannuation is protected against bankruptcy
  5. Ensuring your money goes where you want on death

If you’d like to have a chat about how your current superannuation strategy is working, please don’t hesitate to call us on 02 8203 4160 or contact us via the handy online contact form below.